Stephen H. Amosson

Economic Evaluation of Wind Energy as an Alternative to Natural Gas Powered Irrigation

High natural gas prices have agricultural producers searching for alternative energy sources for irrigation. The economic feasibility of electric and hybrid (electric/wind) systems are evaluated as alternatives to natural gas powered irrigation. Texas Panhandle and Southern Kansas farms are assessed with a quarter-mile sprinkler system, three crops, and two pumping lifts. Breakeven points identify the price at which conversion from a natural gas irrigation system to an electric or hybrid system is cost effective. Results indicate electricity is a more feasible energy source for irrigation and policy changes such as net metering are necessary to make hybrid systems viable.

Economic and Greenhouse Gas Efficiency of Honey Mesquite Relative to Other Energy Feedstocks for Bioenergy Uses in the Southern Great Plains

The US Environmental Protection Agency (EPA) implemented the revised Renewable Fuel Standard (RFS2) in 2010, which mandates that a minimum of 16 billion gallons of cellulosic biofuel be produced by 2022. Woody plants growing on native rangelands in the Southern Great Plains (SGP) region of the USA, such as honey mesquite and juniper species, may have potential as bioenergy feedstock, but there are concerns regarding variability in biomass density distribution and high harvest and transport costs. The objective of this study was to evaluate economic and greenhouse gas (GHG) performances of honey mesquite relative to irrigated and dryland sweet sorghum and dryland switchgrass bioenergy feedstock as delivered to the farm gate. Four efficiency criteria such as biomass production cost, energy cost, GHG offset, and GHG use were calculated. Our results suggest that mesquite lagged slightly behind switchgrass when biomass and energy efficiency are considered. However, mesquite appears superior to the other feedstocks in two categories—GHG offset efficiency and GHG use efficiency once land use change (LUC) effects are accounted for. Mesquite as a bioenergy feedstock in the SGP has greater potential if additional benefits such as increased grass production for livestock production and reduction in herbicide costs for mesquite control—both of which would occur as a result of mesquite harvesting—are considered. Mesquite production values on a per-land area basis are lower than the other feedstocks observed in this comparison and therefore could not supplant those feedstocks entirely, but mesquite appears to be suitable as a complementary feedstock to contribute to total biomass feedstock demand.

Groundwater Policy Research: Collaboration with Groundwater Conservation Districts in Texas

The unique nature of the Ogallala Aquifer presents interesting and confounding problems for water policymakers who are coping with changing groundwater rules in Texas. The purpose of this article is to link previous efforts in water policy research for the Ogallala Aquifer in Texas with current collaborations that are ongoing with regional water planners. A chronological progression of economic water modeling efforts for the region is reviewed. The results of two recent collaborative studies are presented that provide estimates of impacts of alternative policies on groundwater saturated thickness, water use, net farm income, and regional economic activities.

Integrating Stakeholder Input into Water Policy Development and Analysis

Agricultural water use is becoming an issue in much of the South due to population growth. Results of projects evaluating the impacts of conservation strategies aimed at reallocating or extending the life of water supplies are being met with great skepticism by stakeholder groups. In order to gain acceptance of results, it is essential that stakeholder groups be involved from the beginning in the identification of potential water conservation strategies and be kept informed throughout the project. The objective of this paper is to review previous attempts at involving stakeholders and the methodology currently being employed in the Ogallala Aquifer Project.

A New Look at the Economic Evaluation of Wind Energy as an Alternative to Electric and Natural Gas-Powered Irrigation

An extension of the Guerrero et al. (2010) net present value (NPV) analysis using real options analysis (ROA) is offered to improve machinery replacement decisions. Specifically, the feasibilities of replacing natural gas irrigation systems with either electric or hybrid (electric/wind) systems are evaluated. Results indicate NPVand ROA criteria can yield opposite decisions depending on the stochastic nature of the parameters, reversibility of the investment, and flexibility of investment timing. For policy, NPV results indicate that replacing natural gas with a hybrid is on the cusp of being optimal. However, ROA indicates this NPV implication may not hold.

Feasibility of Water Management Strategies for the Declining Ogallala Aquifer

BACKGROUND The Region A groundwater aquifer level in the heavily irrigated, northern region of Texas continues to decline with this portion of the Ogallala Aquifer having no appreciable rate of recharge. The new state water planning requirements warranted a feasibility analysis of water management strategies that could be potentially implemented during the next 60 years to reduce the rate of aquifer pumpage for irrigation use. The strategies proposed in Senate Bill 1 were those of ET network scheduling, changes in crop variety, irrigation equipment improvements, changes in crop type, implementation of conservation tillage methods, precipitation enhancement, and the conversion from irrigated to dryland farming.